We decompose the “China shock” into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the...

This paper investigates the impact of income and non-income shocks on child labour using a model in which the household maximizes utility from consumption as well as human capital development of the child. Two types of shocks are considered: agricultural shocks as an income shock and the death...

We show that exposure to country specific shocks has a positive and significant impact on GDP volatility. In particular, we find that the degree to which the cycles of different trading partners are correlated is more important in explaining exporters’ GDP volatility than the volatility of...

We show that exposure to country specific shocks has a positive and significant impact on GDP volatility. In particular, we find that the degree to which the cycles of different trading partners are correlated is more important in explaining exporters’ GDP volatility than the volatility of...

I exploit the 1998 Russian default as a negative liquidity shock to international banks and analyze its impact on Peru. I find that after the shock international banks reduce bank-to-bank lending to Peruvian banks and Peruvian banks reduce lending to Peruvian firms. The effect is strongest for...

This paper describes some policy instruments set up by the IMF and the European Union in order to provide financial assistance to developing countries whose economies are affected by exogenous shocks from exports side. After briefly reviewing the IMF's CFF and the EU's STABEX, the paper presents...

Why do rebels vary their tactics? Some insurgents employ terrorism and hit-and run attacks; others wage conventional wars against state rivals. Although recent scholarship studies how the technologies of rebellion differ across insurgencies, we have few explanations for why rebel tactics vary...